Introduction to the Video

With thousands of books and endless online content about investing, distilling the essentials into actionable principles can feel overwhelming. In this video, Professor Elroy Dimson from Cambridge University simplifies investing by breaking it down into three fundamental concepts.

The first principle is diversification—the "free lunch" of investing. By spreading your investments across different stocks, industries, markets, and asset classes, you can reduce risk and protect your portfolio from downturns in specific areas.

The second principle is cost control. Professor Dimson highlights how seemingly small fees can compound over time, significantly impacting long-term returns. Minimising costs is essential for maximising your investment outcomes.

The third principle is simplicity. A straightforward, persistent investment strategy is easier to manage and more effective over time than a complex, ever-changing approach.

By focusing on these three pillars—diversification, cost control, and simplicity—you can build a resilient and effective investment portfolio. This video provides a clear roadmap for successful investing, making it a must-watch for anyone looking to strengthen their financial future.

Disclaimer: This video does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.